News

Prudential makes £15bn grab for AIG’s Asian arm

PRUDENTIAL, Britain's biggest insurer, is plotting a £15 billion takeover bid for the Asian assets of its troubled American rival AIG.

Tidjane Thiam, the Pru's chief executive, is in New York this weekend putting a proposal to the AIG board.

The Pru would issue new shares to fund the deal in what would be one of the largest ever such fundraisings by a British company.

If he can seal the deal, Thiam will cement the Pru's position as a dominant force in Asia. It already ranks as the largest or second-largest insurer in nearly every Asian country open to foreign investors.

Thiam has just weeks to clinch a deal. AIG's Asian business is due to list on the Hong Kong Stock Exchange next month, with a group of eight investment banks lined up to handle the listing. Derailing the float would require approval from the American government, which owns 80%